How to achieve efficiency?

One of my goals is to improve the globalization effectiveness and
efficiency, today I have learned more about the efficiency from text
book Economics - Principles, Problems, and Policies (Campbell R.
McConnell, Stanley L. Brue, 2005):



To achieve efficiency, we must realize full production, which mean that
all resources must be used so that they can provide the maximum
possible results, full production implies two kinds of efficiency -
productive and allocative efficiency:

1. Productive efficiency is the production of a product or service in the least costly way.

2. In contrast, allocative efficiency is the least-cost production of
that particular mix of products or services most wanted by our
customers.



To improve productive efficiency, we can outsource or offshore some of
non technical tasks, or use some automation tools, or to leverage the
best practices that have been proven in another project or team.



To improve the allocative efficiency, we will need to prioritize our
projects or initiatives according to the requirements of our customers
or business, and allocate our limited resources to the most critical
activities.

Posted at 11:06PM Oct 28, 2006 by byuan in Leadership  |  Comments[0]